18 Feb 2008

New legislation to extend the SG late payment offset

Employers who make a late Superannuation Guarantee (SG) payment can avoid having to pay the same amount twice.

Further changes have also been announced to make the process more flexible for employers.

Employers are required to make SG contributions on behalf of employees quarterly, but when the contribution is paid late, they become liable for the SG charge. The SG charge includes the contribution plus any interest and an administration fee. This is paid directly to the Australian Tax Office.

Previously, the late payment to the super fund could not be used to offset the SG charge, meaning that employers in this situation effectively paid the contribution amount twice – once to the super fund and once to the ATO, as part of the SG charge.

Under laws, which became effective from 1 January 2006, payments made to a super fund within 28 days of the quarterly cut-off date for receipt of payments, can be used to offset the SG charge that is payable to the ATO. This means that only the administration and interest components of the SG charge would be payable.

Further changes to the law have been proposed which would enable employers to claim an offset for late payments against the SG charge, even if the payment is made later than 28 days from the cut-off. However, these changes are not yet in effect.

Employers should contact the Australian Tax Office if they have any queries.

Do you work with Australia’s most remarkable nurse?

In support of the health and community services industry, HESTA, in conjunction with Members Equity Bank, is proud to present the 2008 HESTA Australian Nursing Awards.

The winners will be announced in a gala dinner in Crown’s Palladium Ballroom, to be hosted by Kim Watkins, on Thursday 15 May, 2008.

The night will feature a performance from Kate Ceberano.

If you know a nurse or a team of nurses who go above and beyond the call of duty, nominate them in the Awards.

There is $25,000* up for grabs in three categories:

Nurse of the Year: $5,000 travel & $5,000 education

Innovation in Nursing: $10,000 development grant

Graduate Nurse of the Year: $2,500 travel & $2,500 education

There are five $500 Coles Group gift cards** to be won, just by nominating. Visit www.hestanursingawards.com to find out how. Nominations close 29 February, 2008.

Tax File Numbers (TFNs)

Don’t forget to provide your employee TFNs to HESTA. Where an employee has provided you with their TFN for employment purposes since 1 July 2007, you are required to provide the TFN to their super fund. Please remember to provide TFNs when advising details of new members. For more information about your TFN obligations, visit www.ato.gov.au/super

REMEMBER: SG contributions for the quarter ending 31 December 2007 should reach HESTA by 28 January 2008. If you have not made your contributions by 28 January you must lodge a SG statement with the Tax Offi ce and pay the SG charge by 28 February 2008.

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